The increase in mortgage lending has helped to boost the building insurance market.
New figures from the Bank of England show that in May the number of home loans granted increased, and total mortgage lending grew at a higher rate than the six-month average.
The number of mortgages approved has risen to around 95,000 per month, compared to a low of 77,000 last November, as rates and the market start to stabilise.
The increase also means that more people are purchasing buildings insurance to cover their new homes, providing a boost to a number of leading insurers.
However, analysts are warning that there is little chance of a housing boom, despite forecasted cuts in the interest rate.
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